Key Highlights

Dogecoin price attempted to trade higher, but failed miserably around a bearish trend line formed on the hourly chart (data feed from HitBTC).

There was a sharp downside reaction after buyers failed to lift the price above the trend line resistance area.

The price is again trading near the highlighted trend line, which is acting as a hurdle for more gains.

Dogecoin price looks like a sell around the bearish trend line, and as long as it is below it the chances of an upside move is very less.

100 MA and Trend Line Confluence

We were looking to buy with a break above a bearish trend line formed on the hourly chart (data feed from HitBTC). However, there was no break above the trend line and resistance area, and on the other hand, there was a failure causing a sharp downside reaction. The price traded lower and tested the last swing low of 29.0 Satoshis. Thankfully, buyers appeared around the stated level to stall losses.

The price is currently moving back higher, but again facing a barrier near the same trend line and resistance area. Moreover, the 100 hourly simple moving average is also positioned around the trend line along with the 50% Fib retracement level of the last wave from the 35.1 Satoshis high to 29.0 Satoshis low. In short, there is a major resistance formed near 32.0-32.5 Satoshis where buyers may continue to struggle.

A break above the trend line and resistance zone could take the price higher may be towards the 76.4% Fib retracement level (35.1 Satoshis high to 29.0 Satoshis low). On the downside, an initial support can be around 31.0 Satoshis.

Looking at the indicators:

Hourly MACD – The MACD is in the bullish zone, signaling positive signs.

Hourly RSI – The RSI is above the 50 level, which another bullish sign.

Disclaimer:The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.

Published by

Aayush Jindal

Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is
well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.
View all posts by Aayush Jindal

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